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What returns can you expect?

OGGY VAN OPERATION
Illustrative Model Van operating
from an existing
shop or premises

No of vans - 1		 Owner driver van operating from an industrial unit

No of vans - 2		 Owner driver van operating from an industrial unit

No of vans - 3
Sales Deliveries £65,000 £130,000 £195,000
Events 10,000 15,000 20,000
75,000 145,000 215,000
Cost of Sales 30,000 40% 58,000 40% 86,000 40%
Wastage 1,500 2% 2,900 2% 4,300 2%
Gross Margin 43,500 58% 84,100 58% 124,700 58%
Insurances 1,200 2,400 3,600
Fuel 2,500 5,000 7,500
Road Tax 185 370 555
Sundries 800 1,600 2,400
Driver(s) @ £12Kpa 12,000 12,000 24,000
Operating Costs 16,685 21,370 38,055
Royalty 6.0% (4,500) (8,700) (12,900)
(Based on turnover net of VAT, payable weekly to Franchisors)
Operating Profit 22,315 54,030 73,745
Van lease costs p.a. 6,000 12,000 18,000
Industrial unit lease p.a. 0 8,000 8,000
Equipment leases 0 5,000 5,000
Profit after leases 16,315 29,030 42,745
Note: Above costs do not include Cost of Finance related to start-up costs of approximately £20k.

Please note: these figures are to be used for illustrative purposes only. They are based upon financial information gathered from various operating units throughout the country and represent an assessment of anticipated operating ratios and 'typical costs and expenses experienced by existing Franchisees in running, working within and managing an Oggy Oggy Pasty Van business.

The Oggy Oggy (Distribution) Company Ltd can neither warrant nor guarantee any levels of performance. above figures are based upon the unit being run by franchisees, working and managing the business and are not illustrative of a unit run under management which will entail higher costs.

The success of venture will very much depend on the efforts and determination of the franchisee.